New estimates from Fidelity proved Elon Musk might have overpaid for Twitter, which he rebranded to "X" in July 2023.
The tech billionaire acquired the social media platform for $44 billion in 2022. At the time, Fidelity, an asset management firm that owns an equity stake in X, estimated its shares were worth $19.66 million. Those same shares are now reportedly worth just $4.2 million, according to an analysis by CNN.
CNN reported the new estimate indicated a 79% decline from what shares were worth when Musk took over compared to today. That means X might be worth $9.4 billion.
"Musk clearly overpaid for this asset," Dan Ives, managing director and senior equity analyst at Wedbush Securities, told CNN in an email.
He said he believes Twitter was actually worth about $30 billion when Musk bought it and now that number is closer to $15 billion. Ives added that engagement on the platform remains "strong" despite a decrease in ad revenue.
X and Fidelity did not respond to CNN's request for comment.
